Marine Farms expands in Spain

This will result in Piagua becoming the biggest seabass/seabream site in Spain. With this expansion, Culmarex`s annual production capacity will increase to approximately 8.200 tonnes, further strengthening Culmarex`s position as being one of the largest producers of seabass and seabream in Spain. In July 2006 Culmarex entered into an agreement to acquire the remaining 80% of the shares in Piagua. At the same time, Culmarex agreed to pay an additional EUR 200.000 given that Piagua was granted the 1000 tonnes expansion The possible extention was already noted in our press release on 29th June 2006 regarding the purchase of 80% of Piagua. Now it has come to fruition. In 2006, Piagua sold 1.256 tonnes seabass/seabream. In the new licence, Piagua has been permitted to use a service platform. This will make the operation more efficient. Together with the expansion, this will help to reduce unit cost and increase profitability. Piagua will become the biggest and most modern fish farm in Spain. Culmarex, being a 100% owned subsidiary of Marine Farms ASA, is a vertically integrated Spanish supplier of seabass and seabream, and conducts all parts of the production, from broodfish through the pre-ongrowing of juveniles up until the fish is ready for the market. Culmarex has approximately 200 employees and is renowned for its good service and high quality. This is reflected in the price the company achieves in the market for its fish. The group was one of the most profitable seabass/seabream producers in 2006. Culmarex will harvest and sell approximately 4.800 tonnes of seabass and seabream in 2007. Culmarex will continue to seek volume growth, both by way of expansion of existing concessions and through acquisitions and Culmarex is talking to other operators in Spain.